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I have a 2001 325Ci (Sport Package) with 102K miles on it. I live in Chicago and have to drive the pothole ridden streets. The right rear suspension seems to have problems now and I think it might be the bushing at the top of the strut. I believe the springs and struts are actually in very good shape. Has anyone encountered this and how hard and expensive was it to DIY?

Have you inspected the rear subframe mounting points to the body? It could be your problem. The dealer is obliged to give you a free comprehensive(?) inspection as a result of the infamous class action lawsuit. The upper rear shock mounts are also a known weak point. Cheap and easy to replace. Rear spring breakage is also a common problem. When it gets a bit warmer I've got to replace mine. If you really want to save your suspension, buy a beater for the winter.

...Rear spring breakage is also a common problem. When it gets a bit warmer I've got to replace mine...

+1 on that. Put your hand on the rear spring and follow the coils downward with your finger. The springs tend to rust and break between 1 and 2 coils from the very bottom, you can't really see it unless you use a mirror but, you'll definitely feel it.

102K on bad roads has most likely wiped out the shocks and struts! But, if it is just RSMs you want to change there are many choices for upgrade. I have Turner/JTD with no issues for 110K. Search RSM. What is the status of your CAB and RTAB?